Kennesaw, GA · Member since 2018 · 3 posts · 0 votes
So I’m looking to buy my first deal, at the moment I don’t have the capital to pay cash for a $60k property, I have been looking at getting an FHA loan, doing the rehab, putting a renter In place, and hopefully be able to refinance with a traditional 30 yr mortgage, I have the cash set aside for a $15k-$20k rehab, so my main thing is does this make sense to do? Refinancing and paying off that FHA loan as well as pulling all my cash back out from the rehab and hopefully more, does this work this way or is there some rules or regulations on this specific kind of thing that would prevent me from doing this?
So I’m looking to buy my first deal, at the moment I don’t have the capital to pay cash for a $60k property, I have been looking at getting an FHA loan, doing the rehab, putting a renter In place, and hopefully be able to refinance with a traditional 30 yr mortgage, I have the cash set aside for a $15k-$20k rehab, so my main thing is does this make sense to do? Refinancing and paying off that FHA loan as well as pulling all my cash back out from the rehab and hopefully more, does this work this way or is there some rules or regulations on this specific kind of thing that would prevent me from doing this?
You must plan on living in the property to get an FHA loan. Usually for a year, is that part of your game plan?
So I’m looking to buy my first deal, at the moment I don’t have the capital to pay cash for a $60k property, I have been looking at getting an FHA loan, doing the rehab, putting a renter In place, and hopefully be able to refinance with a traditional 30 yr mortgage, I have the cash set aside for a $15k-$20k rehab, so my main thing is does this make sense to do? Refinancing and paying off that FHA loan as well as pulling all my cash back out from the rehab and hopefully more, does this work this way or is there some rules or regulations on this specific kind of thing that would prevent me from doing this?
You must plan on living in the property to get an FHA loan. Usually for a year, is that part of your game plan?
Real Estate Professional · West Palm Beach, FL · Member since 2012 · 23k+ posts · 13k+ votes
7y
Yeah, you’ll need to live in it for a year as fha loans are for owner occupied only, one year minimum. Likely can’t refi based on appraisal for a year anyway.
Kennesaw, GA · Member since 2018 · 3 posts · 0 votes
7y
@Caleb Jordan curious If there Is any way of adding rehab costs into the financed amount and using the rehab money as down payment for a traditional mortgage?
@Caleb Jordan curious If there Is any way of adding rehab costs into the financed amount and using the rehab money as down payment for a traditional mortgage?
No I don't think so. If you were to live in property you could look at FHA 203k which lends you money for repairs. Most conventional banks won't give money for repairs though. Some local banks may if you build a relationship with them and have some experience.
So looking at private money or hard money is an option you could check out. Many them will prefer some experience as well though.